The Government of Ecuador, through the Corporación Eléctrica del Ecuador (CELEC EP), announced on April 8 that it is moving forward with the final phase to officially receive the Coca Codo Sinclair hydroelectric plant from Sinohydro. The process aims to establish a specialized operation and maintenance scheme designed to strengthen the reliability, stability, and continuous operation of the facility under ongoing state oversight.
This development follows a binding arbitration award agreed upon by both parties and approved by the International Court of Arbitration of the International Chamber of Commerce in Paris. The ruling was notified on April 3 and is now final, making it mandatory for both Ecuador and Sinohydro.
Provisional acceptance for phase I took place on August 19, 2016, followed by phase II on December 16, 2016. These steps allowed formal transfer of control over the hydroelectric plant to Ecuadorian authorities so its electricity generation could support national energy security.
As part of current agreements between stakeholders, a total compensation package worth $400 million has been established. This includes $200 million in cash as well as another $200 million dedicated to renewable energy projects within Ecuador. Officials emphasize that this arrangement does not involve any transfer or loss of ownership or strategic control over the plant itself.
To further optimize operations at this key power station—which has an installed capacity of 1,500 megawatts and provides up to 30% of Ecuador’s electricity—the government will assign operational responsibility and all associated risks to Power Construction Corporation of China (PowerChina). This company specializes in construction, maintenance, and management for such infrastructure projects. It will also address previously identified construction defects noted by national oversight bodies.
Ecuadorian authorities say these actions are part of efforts stemming from President Daniel Noboa’s official visit to China in June 2025 as well as ongoing technical discussions among involved institutions. They aim to resolve long-standing issues dating back more than a decade while ensuring continued benefit from one of Ecuador’s most important energy assets.
